The product I
chose are the Nike Air Max 87, also known as Air Max I, because they were the
first shoes launched from the Air Max collection. Below I will talk about the
marketing mix of Air Max One.
First of all
many shoes from different companies like Adidas or Puma are competing with the
Air Max, but they still differentiate themselves from their rivals. To start
with is the weight of the product. Air Max are known for their very light
weight, which is the reason why they are called ‘Air’ Max. It is said that
their soles are loaded with air, which makes them so light and is a USP of the
product. Another point would be the flexibility, as Airs can be worn with all
kinds of sports. This is a great benefit for the product and especially for
Nike as their competitors mostly produce footwear directly aiming towards a
sport, which does not give them the same popularity as Air Max One. Furthermore
the padding is another point that differentiates Air max 87 from other product
in the market, as it gives clear medical advantages. Because the products soles
are loaded with air, when the player puts load onto their feet, through moving,
the padding retains the effect in the shoe instead of passing it onto straining
the body. Lastly the strength of Air Ones is noticeable as they give a very
strong feeling to the playing and ensure that the air in the soles stays there.
One of their unique selling points would be that the customer has the possibility
to personalize their show, which is very popular with the Air Max One. It
creates a desire for the customer, because they could have any model they like
and order it in the color or design they want. All in all Air Max One are being
bought, because of their casual look and their great comfort.
Moving on the
price for the shoe varies. First of all it depends if it is for adults or for
children. For children the price of the shoes varies from 50€ to 100€. For
adults the price can start from 100€ to 180€. Buying the shoes online in the
Nike online store would cost the same as buying the shoes at the local Nike
store in town. Even recommended retail prices, like Zalando or Footlocker, do
not differ with their prices. This is also because they have cooperation with
Nike, which means that they have to adapt the price from Nike, Inc. to the
shoes. Noticeable was that Psychological pricing was not used for any of the
websites or any store, as they tend to sell air max at a round price, rather
than selling it for .99€. Furthermore price leadership is being used, which is
a strategy often used for the best selling product or brand of a particular
market. This would apply to air max one and to Nike, Inc. as Air Max are one of
the most popular products of Nike and the firm is the market leader(has highest
market share) in the athletic footwear market. Other rivals like Adidas use the
‘follow the leader’ strategy, as the prices of their product do not differ very
much from the prices of Nike. Although Nike and other retailers do not use a
lot of pricing strategies like technological firms or for services, they tend
to reduce the price of the product, after a while. This is mainly caused by the
season, and if the product is becoming out of season and if it was unpopular.
For place, Nike
has several channels of distributing. This would include through their stores
and retailers, both through e-commerce and through stores. One would be a
zero-level channel (Nike Stores), where the producer/company directly sells to
the customers. Then the one-level channel, where the product is first sold to retailers,
agents or distributors. This would apply to Zalando, Footlocker or Snipes,
which are all known for selling Air Max. Nike Air Max One are being sold in different
kinds of retailers. For example they are sold in independent retailers, which
are selling a very small range of products; multiple retailers might also sell
Nike shoes. Furthermore Nikes would even be sold by hypermarkets and department
stores. A rather not so often used channel of distribution would be the two
level channel. This process happens through selling the product from the
producer (Nike) to a wholesaler (Makro) to a retailer and then to the customer.
There are several wholesalers online, that purchase large amounts of Nike
products and resell them, but it is not as often used as for other products. Other
channels of distribution would include telemarketing, which is not very popular
anymore nowadays, but can be very helpful for a company as it reaches a different
audience, which Nike would maybe not reach through the internet. Because the
Nike Air Max One have been around since 1987, this used to be very poplar to
increase the sales. Adding to that, e-commerce is very popular for selling
Airs, as it reaches a wide international audience. This happens through the
online Nike stores and online retailers, which might be different in every
country. All in all Nike, Inc. is very up to date with their channels of
distribution, which is a cause of their high market share.
Lastly Nike,
Inc. also uses promotion to boost up their sales. First of all they are using a
lot of Above the line promotion, like TV advertising, cinema ads, magazines
advertisements, outdoor wallpapers and especially internet ads. First of all TV
and Cinema ads would be more likely the same as it is an advertising spot,
before a movie. Then Magazine and outdoor ads would also be similar as they
have a paper with all the information of the product. The ad would especially
occur in fitness and health magazines, but maybe even in fashion magazines,
because Airs seem to be a new fashion statement nowadays. On the other hand,
Nike, Inc. also uses Below the line promotion, like branding, which is very
effective for Nike as they are the most recognized shoe company, which also is
caused through their slogan and their logo. Both slogan “Just Do It” and their
logo “Swoosh” are recognized by a wide range of people internationally. This
brand recognition might even go beyond their customer base and their target
market, as people who do not buy Nike products are also very familiar with the
brand and its products. Even their packaging is very effective, because it
creates greater brand recognition by showing the brand logo and name. Direct
marketing is also used by Nike, Inc., because they aim to sell their product
directly to the customers rather than to rely on retailers. Even publicity is
used very much, because they use different celebrity to promote their products,
either in a spot or by them wearing them in their free time, examples LeBron or
Rita Ora. Lastly sponsorship is also commonly used of Nike. The company
sponsors a lot of sports events/tournaments, like the Olympic Games or any
world cup. They even sponsor famous athletes (Jordan, Mario Götze). Nike also
uses the promotional mix (AIDA). First of all they want to raise their brand
awareness by grabbing the customer’s attention. This could happen through any
kind of advertisement. Then they want to make the customer interested in their
product, this happens through could happen through sales promotion or their
USP. Furthermore a desire is created, in order to make the customer think they
need or want the product. This could also happen through the USP or in Nikes
case through the possibility of personalizing your shoes. Lastly the action
takes place, through promotional methods. Also by having the possibility of
ordering the product very fast only and having much flexibility encourages the
action of the customer.
All in all Nike
uses the marketing mix very much, which resulted in a lot of benefits over the
time, since the first Air Max were launched. The product life cycle of air Max
One is very long and they have been in the maturity stage for very long now,
all through extension strategies, which resulted for them ending up as the
market leader.
